Speculative stocks set new Wall Street highs again but blue-chip shares edged lower despite another encouraging economic report. The Dow Jones industrial average, which gained 175 points on Tuesday, meandered through the day, twice recovering from 30point deficits, but finished down 9.48 points at 7,886.44.

Several other popular measures also pulled back slightly as investors secured some of Tuesday's gains, but the Russell 2000 index of smaller companies set its fourth straight closing high and its 13th in 15 sessions.

Stocks started the day with a boost from the Treasury bond market, where interest rates fell for the fourth consecutive session.

Bonds rose after a report showing that construction of new housing unexpectedly slowed 4.8 per cent.

Advancing issues outnumbered decliners by a slim margin on the New York Stock Exchange, with 1,458 up, 1,392 down and 557 unchanged.